2026-4-12 15:16 |
Tron founder Justin Sun has criticized World Liberty Financial. He accused the Trump-linked crypto venture of hiding a blacklist function that allowed it to freeze investor wallets.
In an April 12 post on X, Sun said he invested in World Liberty because he believed the platform’s public pitch around decentralized finance and broader retail access.
Justin Sun Slams World Liberty Financial’s ‘Trap Door’He said the company undermined that belief by hiding a contract feature that let it freeze or restrict token holders without notice or recourse. Sun said the team blacklisted his WLFI wallet in 2025 and urged it to unlock the tokens.
I have always been an ardent supporter of President Trump and his crypto friendly policy.
As an early supporter who invested heavily in World Liberty Financial, I did so because I believed in the vision that was presented to the public: a decentralized finance platform that…
Sun is not a marginal WLFI holder. The Tron founder had spent at least $75 million on WLFI tokens, making him one of the project’s biggest known backers.
However, World Liberty blacklisted Sun’s wallet when the project launched last year. At the time, the company said it flagged the Sun-linked address because it suspected the wallet had misappropriated other holders’ funds.
Sun disputed that characterization and has now recast the episode as evidence that the project retained centralized control inconsistent with its DeFi branding.
“Every action taken by the WLFI team to extract fees from users, to secretly implant backdoor controls over user assets, to freeze investor funds without disclosure or due process, and to treat the crypto community as a personal ATM — all of these actions are illegitimate and were never authorized by any fair, transparent, or good-faith community governance process,” he stated on X.
The continued blacklisting of Sun’s wallet has already resulted in losses of more than $80 million, according to blockchain firm Bubblemaps.
WLFI Faces Increased ScrutinyMeanwhile, Sun’s criticism represents a fresh blow for a project already under pressure after a sharp decline in its token price and criticism of its borrowing practices.
The project was already facing market scrutiny over its use of WLFI as collateral on Dolomite, a decentralized lending protocol. Notably, the protocol is also tied to one of the venture’s advisers.
On-chain activity showed that WLFI’s team posted roughly $400 million of WLFI and borrowed $150 million in stablecoins. The activity raised concerns about liquidity, related-party conflicts, and the risk that a deeper drop in WLFI could intensify stress on the position
Those concerns have already shown up in the market. WLFI fell to an all-time low near $0.08 after investors digested reports about the Dolomite loans.
World Liberty has tried to calm investors rather than retreat from the strategy. The company said on social media that its loan positions were “nowhere near liquidation” and described itself as the “anchor borrower” in WLFI markets.
On April 11, the firm said it had repaid $25 million of the loan. It added that it would publish a governance proposal for a phased unlock for early retail purchasers after community discussion.
The post Justin Sun Accuses Trump’s World Liberty Financial of Hiding Wallet Freeze Function appeared first on BeInCrypto.
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